Tech analyst Luke Lango says SpaceX is just Elon Musk's warm-up act.
His greatest masterstroke will be something he calls “Xpanse” and a few stocks stand to win big from the sweeping societal change it will create.
The Teaser
For Elon Musk, SpaceX is only a warm-up act.
Luke Lango's thing is tech stocks on the verge of major market breakouts. He was early on Tesla and Palantir, among others, and we have reviewed some of his latest calls right here, including a Next DNA Sequencing Giant and AI Hyperscaler Stocks.
Luke doesn't mince words to start this teaser, saying:
SpaceX's public listing was the first step in a $126 trillion plan that could save America from economic catastrophe
So what is Elon's master plan and the looming threat?
Well, Luke isn't certain either. But he does draw on his Silicon Valley connections and statements from those working inside Elon's companies to arrive at some educated conclusions.
As demonstrated on his handy whiteboard, Luke believes SpaceX and Tesla will eventually merge in a stock for stock deal, creating a super-company dubbed “Xpanse.”
Apparently, there have already been internal discussions about pulling off the biggest merger of all-time, which doesn't sound so far-fetched when considering the increasing pace of consolidation at Elon's businesses, and the fact that he retains nearly 85% voting control of SpaceX through a dual-class share structure.
Some analysts also think it's a distinct possibility.
The bigger question is why contemplate such a mega-merger? Money, power, cost-saving “synergies“?
It's actually none of these obvious things.
Instead, it's to harness the full power of the sun, which will bring a civilizational upgrade, and mint a whole new generation of millionaires in the process.
The Pitch
Luke reveals the names of a few select companies that will be the prime beneficiaries of Elon Musk’s next big move inside a series of new reports:
- SpaceX’s Next Major Partner: Make 1,000% Your Money on This Tiny Space Stock
- Elon’s Next Big Supplier: The #1 Way to Profit from SpaceX and Tesla’s Terafab Project
- The U.S. Rare Earth Kingpin: The Cornerstone Manufacturer of Elon Musk’s ‘XPANSE’
They can be ours with a subscription to InvestorPlace's flagship research service, Innovation Investor.
For a limited time, a subscription costs $129 for the first year and it comes with a fourth bonus report as well as a 90-day satisfaction guarantee.
Elon Musk's $126 Trillion Master Plan
A Kardashev Type II civilization.
In Musk's own words this is the end goal.
The Kardashev civilization is a reference to Soviet astronomer Nikolai Kardashev's series of papers from 1964 in which he proposed a method of measuring a civilization's level of technological advancement based on the amount of energy it is capable of harnessing and using.
According to the “Kardashev Scale,” we are just below a Type I civilization, as we cannot yet harness and store all the energy available on our planet.
Elon, like Buzz Lightyear in Toy Story, wants to take us to “infinity and beyond.”
The way he proposes taking us from an (almost) Type I civilization to a interplanetary, stellar, Type II civilization is by combining his various interests in a deliberate way to achieve this overarching mission.
From X's treasure trove of data that is being used to train xAI, to the launch of one million orbital data centers, which in turn will power chip production back on earth that enables Tesla's Optimus robots to proliferate. Each part feeds the other creating moneymaking potential that according to Luke, will be like nothing we’ve ever seen before.
Such a synthesis would also save America and perhaps humanity from the economic catastrophe of China's CCP achieving a Type II civilization first.
Of course, all of it hinges on a short list of critical suppliers that make Musk's master plan possible. They and not SpaceX or Tesla are the best way to make quadruple-digit returns over the coming years.
Revealing Luke Lango's Xpanse Stocks
Making this master plan a reality could cost as much as $5 trillion and Luke's “Xpanse” Stocks are on the receiving end of most of it.
Collectively, these three picks touch every part of Elon's rollout, starting with…
First Xpanse Stock
- It's a critical supplier to the booming aerospace industry.
- This company's hardware was on board NASA's Artemis II moon mission.
- It specializes in complex solar arrays that are needed for SpaceX's proposed orbital data centers.
Since arrays are specifically mentioned, Redwire Corp. (NYSE: RDW) sounds like the pick here.
- Redwire supplied critical sensor and navigation hardware for NASA's Artemis II mission.
- The company specializes in space infrastructure tech, including Extensible Low-Profile Solar Arrays.
Second Xpanse Stock
- It's the only US-based, pure-play company that can supply Tesla's Terafab chip making facility with a critical piece of technology.
There are several possibilities here, but based on the pure play mention, Photronics Inc. (Nasdaq: PLAB) makes the most sense here.
- Photronics is the only publicly traded, pure-play photomask manufacturer in the United States, which is needed to manufacture semiconductor wafers.
Third Xpanse Stock
- A little-known company that has secured a whopping $1.6 billion in government funding to make the country a rare earth mineral producer.
- It's the largest domestic producer of rare earth elements and also recently acquired a Brazilian producer of heavy rare earths.
The pick Luke calls “the most critical of all” is USA Rare Earth Inc. (Nasdaq: USAR).
- USA Rare Earth is backed by the US Department of Commerce to the tune of $1.6 billion for rare earth mining, processing, and magnet production.
- It announced it's acquisition of Brazil-based rare earths miner Serra Verde this past April.
Bonus Xpanse Stock
Luke's free bonus stock offers direct exposure to SpaceX and the broader space economy through stakes in Rocket Lab (RKLB), Viasat (VSAT), and others.
It's the Tema Space Innovators ETF (NYSE: NASA).
1,000% Winners?
$126 trillion in wealth.
This figure represents the overall economic impact that a SpaceX/Tesla mega-merger would create.
A combined SpaceX/Tesla Musk Mega Hold Co. would have a market value of roughly $3.4 trillion, with annual revenue approaching $120 billion. Roughly half that of the largest company in history, the Dutch East India Company, adjusted for inflation.
The economic impact it would create is debatable, but the sheer scale would indeed be yuge!
So ten-bagger gains would definitely be on the table. But are Luke's “Xpanse” stocks the most likely winners?
Redwire: Still scaling and free cashflow negative as a result. Sells for 6x current revenue, which is high.
Photronics: A differentiated business with a clean balance sheet (nearly no debt), and consistent single-digit growth. It sells for a very reasonable 13x trailing earnings.
USA Rare Earth: In the same position as Redwire, except it owns a valuable rare earth deposit, a magnet manufacturing plant, as well as international subsidiaries with the same profile. A solid hard asset play.
Tema: Selling only slightly above net asset value, but it has a history of underperforming the market.
Photronics and USA Rare Earth are the clear standouts and have long-term multi-bagger winner potential.
Quick Recap & Conclusion
- Tech analyst Luke Lango is teasing Elon Musk's next move which he calls “Xpanse” and a few stocks stand to win big from the sweeping societal change it will create.
- “Xpanse” is a placeholder name for the prospective mega-merger between SpaceX and Tesla, which would create as much as $126 trillion in economic value.
- A few companies will be on the receiving end of this and they are all named inside a series of reports. They can be ours, but only with a subscription to InvestorPlace's flagship research service, Innovation Investor, which costs $129 for the first year.
- Fortunately, we were able to reveal most, if not all, of Luke's “Xpanse” Stocks for free! They are Redwire Corp. (NYSE: RDW), Photronics Inc. (Nasdaq: PLAB), USA Rare Earth Inc. (Nasdaq: USAR), and Tema Space Innovators ETF (NYSE: NASA) as the bonus pick.
- Photronics and USA Rare Earth standout and are multi-bagger candidates.
Will Elon merge SpaceX and Tesla? Let us know what you think in the comments.